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Friday, 5 October 2023

Money, tax and benefits

Paying Inheritance Tax using the deceased's Government Stock

If the deceased had British Government Stock, you can use it to pay some or all of the Inheritance Tax due. If the value of the holding is more than the amount of Inheritance Tax, you can sell just enough to pay what’s due.

What is British Government Stock?

British Government Stock includes:

War Loans
Treasury Bills
Exchequer Stock

You can use some or all of these to pay Inheritance Tax on an estate, provided that the person who died was the only stockholder. You can't use the stock to pay the tax if it's registered in joint names or registered with an investment company that looked after it for the deceased.

How do I find out how much the stock is worth?

You can find out the value of the stock from your bank or a stockbroker, or you can contact the UK Debt Management Office. You’ll need to tell them precisely the kind of investment it is.

Remember that the value of stocks can go up or down and you’ll only be able to get a valuation for a specific day.

Contact the UK Debt Management Office Opens new window

What does it cost?

Computershare, the registrar for British Government Stock, charges a commission for selling the stock.

Commission rates for selling stock - Computershare terms and conditions Opens new window

How to pay using British Government Stock

It can take up to four weeks for the money to be transferred to HM Revenue & Customs (HMRC), so this is not the best method to use if the grant of probate (or confirmation in Scotland) is needed urgently.